PTT Exploration and Production (PTTEP) expects its 2021 oil and gas sales will grow by 12% to 398 from 354 kilo barrels of oil equivalent per day (KBOED) last year, thanks to more oil and gas production and recovery from the global oil price plunge.
Last year, the company saw only 1% growth when global oil demand plummeted during the enforcement of lockdown measures to contain the spread of Covid-19, said Orachon Ouiyamapun, PTTEP's senior vice-president, Finance Division.
The company based its projection on the average global oil price range of US$50-55 per barrel in the Dubai market.
She said PTTEP will also continue to decrease unit costs of oil and gas production to $28-29 from $31.7 per barrel last year.
The company yesterday announced a capital spending allocation worth $23.6 billion for 2021-25.
In the first two years, part of the money will go to operations of two gas blocks in Thailand -- G1/61 (Erawan) and G2/61 (Bongkot) -- and support gas production of 270 million standard cubic feet per day at Malaysia's Sabah Block H as well as the first-phase crude oil production development project at Algeria's on-shore Hassi Bir Rekaiz.
In 2023-24, PTTEP plans to spend the budget for a liquefied natural gas production facility at Mozambique's Rovuma Area 1 and Malaysia's Sarawak SK 410B, or Lang Lebah Project, as well as further expansion of its new business in robotic and artificial intelligence fields.
In 2025, the company will spend the money for the second-phase development of crude oil production at Algeria's on-shore Hassi Bir Rekaiz Project, which will add 30-50 KBOED to its reserves.
"PTTEP will continue to acquire more assets in connection with oil and gas resources in Asia and the Middle East," according to Ms Orachon.
"We have cash on hand worth $2.85 billion and the financial capability to raise funds for new asset acquisitions in the E&P sector," said Ms Orachon.
The latest acquisition was the purchase of a 20% stake in Oman's Block 61 from BP Exploration (Epsilon), one of the largest gas developers in the Middle East.
The investment will increase the company's petroleum reserves and sales volumes, foster long-term growth and open up further investment opportunities in the Middle East.
The gas block has the capacity to deliver approximately 35% of total gas output in Oman.